The UK’s markets watchdog has opened a probe into the acquisition of Unilever’s foods business by US spice and saucemaker McCormick.
The Competition & Markets Authority this morning issued an invitation to comment, whereby interested parties can submit their thoughts on how the merger might affect competition in the UK market.
The phase 1 inquiry will determine whether the CMA decides to open a formal investigation into the acquisition, which was announced at the end of March.
Expected to close in mid-2027, the deal brings together McCormick brands such as Cholula and Frank’s RedHot with Unilever’s Hellmann’s and Knorr to create a $20bn-turnover “global flavour powerhouse”.
In June, McCormick said it was making “strong progress” planning the integration, which is expected to generate around $600m in annual synergies.
The European location for McCormick’s secondary listing of shares is expected to be announced by the end of July, and the company will share more detail on its future operating model and growth synergies by the end of September.
McCormick’s second quarter results showed organic revenue growth of 1.7% in the three months to 31 May. The increase was driven by price increases rather than volume, which fell 0.5%.
Group operating profits jumped from $246m to $276m, and the company affirmed its financial guidance for the year.
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